International Competition Policy

International Competition Policy

Maintaining Open Markets in the Global Economy

Michael A. Utton

The book begins by setting out the principles of competition and trade policies, and then goes on to address the impact of market globalisation on what are usually thought of as traditional antitrust concerns. These include the analysis of the difficulties arising from collusion and other restrictive practices, government sponsored ‘voluntary co-operation’, vertical restrictions and market access, pricing strategies of dominant firms and international mergers, all illustrated with a number of prominent case studies. The author concludes with an illuminating discussion on the feasibility of international co-operation on competition policy, the faltering progress that has been made so far and the prospects for future advances.

Chapter 9: Attempts at International Co-operation

Michael A. Utton

Subjects: economics and finance, competition policy, industrial economics, international economics


I INTRODUCTION The problems discussed in the previous chapters and the need for some international policy response have been recognised for at least half a century. The economic conditions may change and affect the urgency with which they are considered but the fundamental problems remain. Thus, in the aftermath of the highly restrictive trade policies pursued by many countries and the growth of international cartels in the face of the Depression of the 1930s, international negotiations for freeing world trade after World War II had on the agenda mechanisms for regulating international competition. In subsequent decades, as the growth of world trade accelerated, accompanied by the rapid development of multinational enterprises, renewed attempts were made to coordinate the regulation of competition at an international level. For some observers the incorporation of comprehensive competition policy provisions into the founding treaties of what is now the European Union provided a model for much wider international co-operation. Others saw this as such a special case, applicable only to a group of fairly homogeneous states at approximately the same level of development, that it could provide little guidance for any wider arrangements. A number of countries have therefore preferred to negotiate limited co-operative agreements with one or two of their major trading partners. The WTO has recognised the need for urgent action on competition issues to ensure that the progress made over many decades on reducing direct barriers to trade is not neutralised by private arrangements amongst companies to restrict competition. The subsequent sections...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information